Which one of the following is correct for determining relevant costs?
A)Differential.
B)Integrative.
C)Long-term focus.
D)Subjective.
E)Opportunistic.

Question

Quizplus · Accepted Answer

Differential costs are the relevant costs that are incurred due to a specific decision or alternative. These costs differ between the alternatives and help in the decision-making process. Option B is incorrect as integrative costs are not relevant costs but instead are the costs that are spread across multiple products or departments. Option C (long-term focus) and option E (opportunistic) do not relate specifically to relevant costs. Option D (subjective) is incorrect as relevant costs need to be objective and verifiable.

Which One of the Following Is Correct for Determining Relevant